UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ____________ Commission file number 000-27548 LIGHTPATH TECHNOLOGIES, INC Securities registered pursuant to Section 12(b) of the Act: | Title of each ...

Financial Data and Key Metrics Changes - Revenue for the fiscal second quarter was $7.3 million, down from $8.5 million in the same period last year [65] - Net loss for the second quarter was approximately $1.7 million, compared to a loss of $0.7 million in the same quarter of the prior fiscal year [69] - EBITDA for the quarter was a loss of approximately $454,000, compared to an income of $207,000 for the same quarter of the prior fiscal year [39] Business Line Data and Key Metrics Changes - Sales of infrared components were $3.6 million, representing 49% of consolidated revenue, an increase of approximately $283,000 or 9% [35][65] - Revenue from visible components decreased by approximately $1.2 million or 31%, primarily due to ongoing trends in China and the telecom industry [66] - Assembly solutions revenue decreased approximately $241,000 or 20%, primarily due to timing of shipments against a multiyear contract with a defense customer [36] Market Data and Key Metrics Changes - Total backlog at December 31, 2023, was approximately $21.2 million, a decrease of 28% compared to $29.4 million as of December 31, 2022 [43] - The company is seeing growth in infrared components and assemblies, aligning with strategic plans despite a decline in visible components [41][66] - The automotive market is expected to lead to over 1 million assemblies a year for each car company, with ASPs up to $50 per vehicle [25] Company Strategy and Development Direction - The company is transitioning from a component manufacturer to a provider of engineered solutions, focusing on imaging solutions, new markets like automotive, and defense business growth [17][30] - The acquisition of Visimid is integral to this strategy, enhancing capabilities in custom imaging solutions and increasing market share [6][18] - The company aims to capitalize on geopolitical dynamics, particularly in defense, to drive demand for its products [85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing integration of Visimid and the potential for significant revenue from the Lockheed Martin project, with expectations of tens of millions of dollars in annual revenue [22][30] - The geopolitical environment is driving demand for optics, particularly in defense applications, with increased orders from customers in Israel and Ukraine [85] - Management noted that the transition to new materials replacing Germanium is progressing well, with customers actively redesigning their systems [56][119] Other Important Information - The company has developed unique materials to replace Germanium in infrared imaging systems, which are expected to offer advantages over traditional materials [59] - Capital expenditures for the first half of fiscal 2024 were approximately $1.5 million, largely driven by the expansion of the Orlando facility [73] - The company welcomed a new independent director, Kim Crider, to the Board, enhancing its focus on defense [31] Q&A Session Summary Question: What is the total revenue capacity now with the expansion completed in Orlando? - Management indicated that the capacity could reach $50 million or more depending on the complexity of the projects [46][106] Question: Has the business in China bottomed out? - Management believes that the business in China has bottomed out, with most revenue now coming from other regions [80] Question: Is the geopolitical environment causing an uptick in demand in other parts of the business? - Yes, there has been an uptick in demand, particularly from customers in Israel and Ukraine due to recent conflicts [85] Question: How is the transition to new materials going? - The transition is going well, with significant engagement from customers to redesign their systems using new materials [119] Question: What is the outlook for the second half of the fiscal year? - Management expects an uptick in revenue in the second half, particularly in infrared components, despite ongoing challenges in visible components [124][162]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ____________ Commission file number 000-27548 LIGHTPATH TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Delaware 86-0708 ...

Financial Data and Key Metrics Changes - For the first quarter, consolidated revenues were $8.1 million, an increase from $7.4 million in the same period last year [57] - Gross margin was approximately $2.3 million, a 4% increase compared to $2.2 million in the prior year [39] - Net loss for the first quarter was approximately $1.3 million, an improvement from a net loss of $1.4 million in the same quarter last year [42] - EBITDA loss for the quarter was approximately $432,000, compared to $392,000 for the same period last year [44] Business Line Data and Key Metrics Changes - Revenue from infrared components was $3.8 million, accounting for 47% of total revenue, while visible components generated $2.7 million or 33% of total revenue [57] - Revenue from assemblies and modules was $1.3 million, representing 16% of total revenue, and engineering services contributed $0.3 million or 4% [57] - The increase in infrared component sales was primarily due to a renewed contract for an international military program [58] Market Data and Key Metrics Changes - Defense revenue continues to grow, particularly in the US, while non-defense revenue is softening in China and Europe [18] - The company anticipates continued softness in the non-defense sector globally for the next few quarters [18] - Total backlog as of September 30, 2023, was approximately $21.3 million, a decrease of 7% compared to $23 million a year ago [48] Company Strategy and Development Direction - The company is transitioning from a component manufacturer to a value-added solutions provider, focusing on three pillars of growth: Imaging Solutions, defense market, and automotive [10][11] - The acquisition of Visimid Technologies is a strategic move to enhance capabilities in integrated camera modules and expand market reach [22][25] - The company aims to reduce exposure to germanium components and is working on alternatives using proprietary materials [16][91] Management's Comments on Operating Environment and Future Outlook - Management noted that the automotive market may experience delays in the rollout of new technologies due to challenges faced by car manufacturers [31][66] - The company is optimistic about the potential for significant revenue from defense contracts and integrated solutions [19][29] - Management expressed confidence in the long-term growth prospects despite short-term challenges in the non-defense sector [18][36] Other Important Information - The company has reorganized its product groups into four categories: infrared components, visible components, assemblies and modules, and engineering services [55] - Cash provided by operations was approximately $1.1 million for the first quarter, a significant improvement from cash used in operations of approximately $415,000 in the prior year [46] - The company is actively working on developing alternatives to germanium materials in collaboration with major customers [91] Q&A Session Summary Question: What is the impact of the automotive market slowdown on the company's projects? - Management indicated that the integration of thermal imaging into EVs may face delays due to challenges in system architecture and integration by car manufacturers [66][75] Question: How is the company managing its germanium supply issues? - Management explained that the process for obtaining export licenses for germanium has been cumbersome, leading to a strategic decision to reduce reliance on germanium components [80][81] Question: What are the expectations for backlog growth with the acquisition of Visimid? - Management expects that the acquisition will lead to longer-term contracts and more consistent growth in backlog, particularly with higher ASPs from engineered solutions [95]

Revenue Performance - Revenue for the three months ended September 30, 2023, was $8,077,248, an increase of 9.6% compared to $7,366,901 for the same period in 2022[16] - Revenue from infrared components was $3,834,602, up from $3,189,551 in the previous year, reflecting a growth of 20.2%[42] - Revenues for the three months ended September 30, 2023, totaled $8,077,248, an increase from $7,366,901 in the same period of 2022, with U.S. revenues rising to $4,293,394 from $2,965,295[93] - Revenue for Q1 fiscal 2024 was approximately $8.1 million, an increase of 10% compared to $7.4 million in the same period last year[131] - Revenue from infrared components was approximately $3.8 million, a 20% increase from $3.2 million in the prior year, driven by shipments for an international military program[132] - Revenue from visible components decreased by 18% to $2.7 million, primarily due to reduced sales in the telecommunications industry in China and through distribution channels in the U.S. and Europe[132] - Revenue from assemblies and modules increased by 45%, with one-third of this increase attributed to Visimid product sales and the rest from defense industry customers[132] - Revenue from engineering services increased by $253,000, mainly due to Visimid sales and a space-related funded research contract[132] Financial Results - Gross margin for the quarter was $2,331,706, resulting in a gross margin percentage of approximately 28.9%[16] - Operating loss for the quarter was $(1,250,622), slightly higher than the operating loss of $(1,235,413) in the same quarter of the previous year[16] - Net loss for the quarter was $(1,342,376), compared to a net loss of $(1,380,700) for the same period in 2022, indicating a 2.8% improvement[16] - Net loss for Q1 fiscal 2024 was approximately $1.3 million, a decrease of approximately $38,000 from the prior year, with basic and diluted loss per share of $0.04[139] - EBITDA for the quarter ended September 30, 2023, was a loss of approximately $432,000, compared to a loss of $392,000 for the same period in the prior fiscal year[174] Assets and Liabilities - Total assets increased to $55,312,749 as of September 30, 2023, up from $53,536,184 as of June 30, 2023[14] - Total liabilities rose to $20,418,014, compared to $17,583,659 at the end of the previous quarter, reflecting an increase of 10.5%[14] - Cash and cash equivalents decreased to $4,316,965 from $4,687,004 at the end of the previous quarter, a decline of 7.9%[13] - Cash and cash equivalents at the end of the period were $6,859,958, compared to $4,298,869 at the end of the same period last year, representing a year-over-year increase of 59.5%[21] - The company had working capital of approximately $11.4 million and total cash and cash equivalents of approximately $6.9 million as of September 30, 2023[143] Acquisitions and Investments - The company acquired Visimid Technologies for a total purchase price of approximately $2.9 million, which includes $1 million in cash and $1,550,000 in restricted stock[33] - Goodwill increased to $8,915,637 as of September 30, 2023, primarily due to the acquisition of Visimid, which added $3,060,732 in goodwill[45] - The company incurred approximately $83,000 in acquisition costs related to Visimid during the quarter, in addition to $140,000 incurred in the previous quarter[35] - Approximately $955,000 was expended on capital equipment investments in Q1 fiscal 2024, significantly higher than the $243,000 spent in the same period last year[153] Taxation - The effective income tax rate for the three months ended September 30, 2023 was -3%, compared to -8% for the same period in 2022[48] - The statutory income tax rates for the company's Chinese subsidiaries were 25% for LightPath Optical Instrumentation (Shanghai) Co., Ltd. and 15% for LightPath Optical Instrumentation (Zhenjiang) Co., Ltd. as of September 30, 2023[52] - The company has no additional tax expense or benefit expected to be recorded on pre-tax income or losses generated in the U.S. based on the current assessment of the valuation allowance position[51] Operational Changes - The company reorganized its product groups into four categories: infrared components, visible components, assemblies and modules, and engineering services, to align with its strategic focus on value-added solutions[42] - The company is focusing on transitioning to more value-added solutions and reorganized its products into four groups: infrared components, visible components, assemblies and modules, and engineering services[164] - The company has experienced some short-term adverse impacts on domestic sales in China due to management transitions but does not anticipate material long-term effects[100] - The ongoing COVID-19 pandemic continues to affect economic conditions in China, impacting demand and financial performance, although no significant direct financial impact has been reported to date[102] Debt and Financing - The BankUnited Term Loan amount is $5,813,500, with a maturity date extended to December 31, 2024[81] - The interest rate on the Term Loan is 8.5% as of September 30, 2023, following adjustments in the loan agreement[82] - The company has a total loan payment obligation of $2,505,973, with $716,301 due in the remaining nine months of fiscal year ending June 30, 2024[91] - The company is in discussions for refinancing its BankUnited Term Loan due on December 31, 2024, with no assurance of success[22] Stock and Compensation - The number of shares used in the basic loss per share calculation increased to 37,431,748 from 27,070,949 year-over-year[16] - Total stock-based compensation expense for the three months ended September 30, 2023 was $240,075, down from $284,598 in the same period of 2022[58] - The weighted-average number of basic shares outstanding for the three months ended September 30, 2023 was 37,431,748, an increase from 27,070,949 in 2022[66] - The company has approximately $535,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements as of September 30, 2023[65] Future Outlook - The company anticipates renewal of existing annual and multi-year contracts in future quarters[161] - The company aims to convert more business to a design win and annuity revenue model to leverage engineering capabilities and production capacity[157] - Total backlog as of September 30, 2023, was approximately $21.3 million, a decrease of 7% compared to $23.0 million as of September 30, 2022[161] - Demand for infrared products continues to grow, driven by interest in proprietary materials and alternatives to germanium[162]

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2023 were $9.7 million, up from $8.9 million in the same period last year, with infrared product sales accounting for $5.5 million or 56% of total revenue [17][18] - Gross margin for Q4 2023 was approximately $3.1 million, a 10% increase compared to $2.8 million in the prior year [19] - Net loss for Q4 2023 was approximately $809,000, an improvement from a loss of $1.4 million in the same quarter last year [48] - Full-year revenue for fiscal 2023 was $32.9 million, a decrease of 7% from $35.6 million in fiscal 2022 [49] - EBITDA for fiscal 2023 was a loss of approximately $355,000, compared to income of $1.2 million in fiscal 2022 [53] Business Line Data and Key Metrics Changes - Sales of infrared products increased, primarily driven by diamond-turned infrared products for defense and industrial markets [18] - Revenue from precision molded optics (PMO) was $3.2 million, representing 33% of consolidated revenue, while specialty products generated $1 million or 11% of total revenue [45] - PMO sales in China remained soft across all industries, while specialty optics saw increased demand from the medical industry [46][50] Market Data and Key Metrics Changes - U.S. sales grew by 19% year-over-year, while sales in China decreased by 55% and in the EU by 27% [23] - The decline in China is attributed to a poor economy and lack of demand for telecom and industrial products [23] Company Strategy and Development Direction - The company is transitioning from a component manufacturer to a value-added solutions provider, focusing on three pillars of growth: imaging solutions, automotive market expansion, and defense business [35][39] - The acquisition of Visimid Technologies enhances the company's capabilities in customizing electronics and software for infrared cameras, complementing its optical assembly expertise [41][42] - The company is working with the U.S. Department of Defense to qualify new materials as alternatives to germanium, which is facing supply chain vulnerabilities [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the defense sector and the automotive market, particularly in thermal imaging applications [12][39] - The company is well-positioned for growth in fiscal 2024, despite short-term challenges related to export restrictions on germanium [11][27] Other Important Information - The company had working capital of approximately $14.9 million and total cash of about $7.1 million as of June 30, 2023 [26] - An increase in accounts receivable of $1.4 million in Q4 was noted, which is expected to stabilize in the upcoming quarters [27] Q&A Session Summary Question: What is the timeline for Mantis production decisions? - Management expects production decisions for Mantis to ramp up within the fiscal year, particularly in flame detection applications [57] Question: Update on germanium export controls from China? - The company has submitted export licenses for germanium shipments, with expectations for shipments to commence by mid-November [66][67] Question: What is the backup plan if germanium supply is disrupted? - The company has secured a one-year supply of germanium and is exploring alternative materials to mitigate risks [70][89] Question: What percentage of total revenue does China represent now? - China now represents less than 10% of total revenue, with a focus on higher-value markets moving forward [108]

PART I [Item 1. Business](index=3&type=section&id=Item%201.%20Business.) LightPath Technologies, Inc. manufactures optical components globally, transitioning to a solutions partner leveraging advanced optical technologies - LightPath Technologies, Inc. was incorporated in Delaware in 1992 and operates globally with major facilities in the United States, the People's Republic of China, and the Republic of Latvia, with corporate headquarters in Orlando, Florida[14](index=14&type=chunk) - The company's strategic direction has evolved from focusing on optical component manufacturing to providing domain expertise in optics and partnering with customers for optical engine solutions[26](index=26&type=chunk) - In July 2023, LightPath acquired Visimid Technologies, an engineering and design firm specializing in thermal imaging, night vision, and IoT applications, to enhance development and engineering capabilities[18](index=18&type=chunk)[28](index=28&type=chunk)[33](index=33&type=chunk) - LightPath is developing and commercializing BlackDiamond glass (BD2, BD6) as an alternative to Germanium for infrared applications, offering advantages like multispectral imaging and a-thermal behavior, supported by government funding[33](index=33&type=chunk)[47](index=47&type=chunk)[62](index=62&type=chunk) - New product development costs were approximately **$2.1 million** in both fiscal years 2023 and 2022, with a recent focus on internally-funded projects like the MANTIS broadband multispectral camera[36](index=36&type=chunk)[173](index=173&type=chunk) - The company's revenues are categorized into three product groups: Precision Molded Optics (PMOs), infrared products, and specialty products, including value-added items and NRE products[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - LightPath's competitive advantages include unique technologies (e.g., precision molded optics), vertical integration in infrared optics, and manufacturing flexibility with facilities in Asia, Europe, and North America[57](index=57&type=chunk)[60](index=60&type=chunk)[64](index=64&type=chunk) Revenue by Product Group (FY2023 vs. FY2022) | Product Group | FY2023 Revenue ($) | FY2022 Revenue ($) | Change (%) | | :-------------- | :----------------- | :----------------- | :--------- | | PMO | 13,425,643 | 15,020,542 | -11% | | Infrared Products | 16,735,869 | 18,735,325 | -11% | | Specialty Products | 2,772,437 | 1,803,293 | 54% | | **Total Revenue** | **32,933,949** | **35,559,160** | **-7%** | Customer Concentration (FY2023 vs. FY2022) | Metric | FY2023 | FY2022 | | :-------------------------------- | :----- | :----- | | Sales to top 3 customers (aggregate) | 24% | 35% | | Sales to largest customer | 11% | 19% | | Sales to second largest customer | 7% | 9% | | Sales to third largest customer | 6% | 7% | International Sales (FY2023 vs. FY2022) | Metric | FY2023 | FY2022 | | :-------------------------------- | :----- | :----- | | Net revenue from outside U.S. | 50% | 61% | | Foreign sales from Europe and Asia | 93% | 95% | [Item 1A. Risk Factors](index=13&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including net losses, customer concentration, and international operational vulnerabilities - LightPath reported net losses of **$4.0 million**, **$3.5 million**, and **$3.2 million** for fiscal years 2023, 2022, and 2021, respectively, with an accumulated deficit of approximately **$207.8 million** as of June 30, 2023[91](index=91&type=chunk) - The company is highly dependent on a few key customers; in fiscal year 2023, three customers accounted for an aggregate of approximately **24%** of annual revenue, with the largest customer contributing **11%**[94](index=94&type=chunk)[428](index=428&type=chunk) - International operations expose the company to political and economic risks, including supply shortages from single/limited sources (e.g., Germanium from China), the impact of the Russia-Ukraine conflict, and international tariffs[96](index=96&type=chunk)[97](index=97&type=chunk)[104](index=104&type=chunk) - Future growth is dependent on market penetration efforts, including diversifying sales and offering complete optical solutions, which requires gaining customer trust and significant investment[107](index=107&type=chunk) - The company faces substantial competition from larger companies with greater resources and anticipates further reductions in average selling prices for some products[112](index=112&type=chunk)[114](index=114&type=chunk) - Protection of intellectual property relies on trade secrets, patents, trademarks, and copyrights, but there's a risk of competitors developing similar technology and enforcement challenges globally[140](index=140&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) [Item 2. Properties](index=21&type=section&id=Item%202.%20Properties) LightPath's primary properties consist of leased office and manufacturing facilities in Orlando, Riga, and Zhenjiang Company Facilities as of June 30, 2023 | Location | Square Feet | Commitment and Use | | :--------------- | :---------- | :------------------------------------------------------ | | Orlando, Florida | 58,500 | Leased; corporate headquarters, manufacturing, R&D | | Riga, Latvia | 29,000 | Leased; administrative offices, manufacturing, crystal growing | | Zhenjiang, China | 55,000 | Leased; manufacturing | [Item 3. Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) LightPath is involved in various legal actions in the normal course of business but currently has no material legal proceedings - The company is involved in various legal actions arising in the normal course of business but currently has no material legal proceeding to which it is a party or to which its property is subject[151](index=151&type=chunk) [Item 4. Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to LightPath Technologies, Inc PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=22&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) LightPath's Class A common stock trades on Nasdaq under 'LPTH', with no cash dividends paid or intended - LightPath's Class A common stock is traded on the Nasdaq Capital Market under the symbol 'LPTH'[154](index=154&type=chunk) - As of September 7, 2023, there were approximately **212 holders of record** and **10,192 street name holders** of the company's Class A common stock[155](index=155&type=chunk) - The company has never declared or paid any cash dividends on its Class A common stock and does not intend to do so in the foreseeable future, planning to retain all future earnings for business operations and expansion[156](index=156&type=chunk) [Item 6. Reserved](index=22&type=section&id=Item%206.%20Reserved.) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) LightPath's FY2023 revenue decreased 7% to $32.9 million, with stable gross margin but increased net loss and negative EBITDA - The COVID-19 pandemic continues to impact economic conditions, particularly in China, negatively affecting demand and operations, including travel restrictions[161](index=161&type=chunk)[422](index=422&type=chunk) - LightPath incurred approximately **$400,000** in legal and consulting fees in fiscal year 2022 related to malfeasance by former Chinese subsidiary employees, with severance payments of **$430,000** paid in fiscal year 2023[163](index=163&type=chunk)[165](index=165&type=chunk)[414](index=414&type=chunk)[416](index=416&type=chunk)[417](index=417&type=chunk) Key Financial Results (FY2023 vs. FY2022) | Metric | FY2023 ($) | FY2022 ($) | Change (%) | | :---------------------- | :------------ | :------------ | :--------- | | Revenue, net | 32,933,949 | 35,559,160 | -7% | | Cost of sales | 21,859,126 | 23,744,524 | -8% | | Gross margin | 11,074,823 | 11,814,636 | -6% | | Gross margin % of revenue | 34% | 33% | +1 pp | | Operating loss | (3,554,541) | (2,627,234) | +35% | | Net loss | (4,046,871) | (3,542,181) | +14% | | Basic/Diluted Loss per Share | (0.13) | (0.13) | 0% | - Selling, General and Administrative (SG&A) costs increased by **2%** to **$11.4 million** in FY2023, primarily due to increased stock compensation, personnel costs, Visimid acquisition costs (**$140,000**), and Orlando facility exit costs (**$129,000**)[172](index=172&type=chunk) - New product development costs increased by **3%** to **$2.1 million** in FY2023, driven by greater spending on internally-funded projects like the MANTIS reference design camera[173](index=173&type=chunk) - Interest expense increased to **$283,000** in FY2023 due to rising interest rates, despite a **30%** reduction in total debt; other income decreased significantly due to a non-recurring **$210,000** accrual reversal in FY2022[174](index=174&type=chunk)[175](index=175&type=chunk) - Income tax expense decreased to **$234,000** in FY2023, primarily related to China operations and Chinese withholding taxes on intercompany dividends; LPOIZ qualifies for a reduced Chinese income tax rate of **15%**[176](index=176&type=chunk)[347](index=347&type=chunk)[349](index=349&type=chunk) - Cash flow used in operations was **$2.8 million** in FY2023, a decrease from **$1.5 million** provided in FY2022, mainly due to increases in accounts receivable and inventory; capital expenditures increased to **$3.1 million** for the Orlando Facility expansion[193](index=193&type=chunk)[195](index=195&type=chunk) - Net cash provided by financing activities was **$7.5 million** in FY2023, driven by **$9.2 million** in equity proceeds from a public offering in January 2023[197](index=197&type=chunk)[409](index=409&type=chunk) - The company's strategy focuses on converting 'turns' business to more rewarding 'annuity' revenue streams through customer product development and 'engineered solutions'[198](index=198&type=chunk)[199](index=199&type=chunk) Quarterly Sales Backlog (FY2022-FY2023) | Quarter | Total Backlog ($000) | Change From Prior Year End (%) | Change From Prior Quarter End (%) | | :------ | :------------------- | :----------------------------- | :------------------------------ | | Q1 2022 | 19,265 | -10% | -10% | | Q2 2022 | 21,929 | 3% | 14% | | Q3 2022 | 19,678 | -8% | -10% | | Q4 2022 | 17,767 | -17% | -10% | | Q1 2023 | 22,973 | 29% | 29% | | Q2 2023 | 29,427 | 66% | 28% | | Q3 2023 | 26,620 | 50% | -10% | | Q4 2023 | 21,652 | 22% | -19% | Revenue and Units by Product Group (FY2023 vs. FY2022) | Product Group | FY2023 Revenue ($) | FY2022 Revenue ($) | Revenue Change (%) | FY2023 Units | FY2022 Units | Units Change (%) | | :---------------- | :----------------- | :----------------- | :----------------- | :----------- | :----------- | :--------------- | | PMO | 13,425,643 | 15,020,542 | -11% | 1,462,800 | 1,999,200 | -27% | | Infrared Products | 16,735,869 | 18,735,325 | -11% | 167,095 | 438,508 | -62% | | Specialty Products | 2,772,437 | 1,803,293 | 54% | 58,197 | 18,948 | 207% | | **Total** | **32,933,949** | **35,559,160** | **-7%** | **1,688,092** | **2,456,656** | **-31%** | Days Cost of Sales in Inventory (DCSI) (FY2022-FY2023) | Fiscal Quarter | Ended | DCSI (days) | | :------------- | :--------- | :---------- | | Q4-2023 | 6/30/2023 | 102 | | Q3-2023 | 3/31/2023 | 154 | | Q2-2023 | 12/31/2022 | 120 | | Q1-2023 | 9/30/2022 | 125 | | **FY2023 Average** | | **125** | | Q4-2022 | 6/30/2022 | 104 | | Q3-2022 | 3/31/2022 | 132 | | Q2-2022 | 12/31/2021 | 104 | | Q1-2022 | 9/30/2021 | 134 | | **FY2022 Average** | | **118** | Days Sales Outstanding (DSO) (FY2022-FY2023) | Fiscal Quarter | Ended | DSO (days) | | :------------- | :--------- | :--------- | | Q4-2023 | 6/30/2023 | 63 | | Q3-2023 | 3/31/2023 | 59 | | Q2-2023 | 12/31/2022 | 52 | | Q1-2023 | 9/30/2022 | 57 | | **FY2023 Average** | | **58** | | Q4-2022 | 6/30/2022 | 54 | | Q3-2022 | 3/31/2022 | 55 | | Q2-2022 | 12/31/2021 | 49 | | Q1-2022 | 9/30/2021 | 59 | | **FY2022 Average** | | **54** | EBITDA (FY2023 vs. FY2022) | Metric | FY2023 ($) | FY2022 ($) | | :----- | :--------- | :--------- | | EBITDA | (355,002) | 1,167,944 | | % of revenue | -1% | 3% | [Item 8. Financial Statements and Supplementary Data](index=34&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the consolidated financial statements and supplementary data from Item 15 of Part IV - The information required by this Item is incorporated by reference to the consolidated financial statements and supplementary data set forth in Item 15. Exhibits, Financial Statement Schedules of Part IV of this Annual Report on Form 10-K[240](index=240&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=34&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) LightPath Technologies, Inc. reports no changes in or disagreements with accountants on accounting and financial disclosure - There have been no changes in or disagreements with accountants on accounting and financial disclosure[241](index=241&type=chunk) [Item 9A. Controls and Procedures](index=34&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of June 30, 2023 - As of June 30, 2023, LightPath's disclosure controls and procedures were effective to provide reasonable assurance that required information is recorded, processed, summarized, and reported timely[243](index=243&type=chunk) - Management assessed and concluded that the company's internal control over financial reporting was effective as of June 30, 2023, based on the COSO Internal Control—Integrated Framework (2013)[244](index=244&type=chunk) - Following events at its Chinese subsidiaries, LightPath adopted additional policies and procedures to improve internal controls, including revising reporting structures for foreign-based finance directors and implementing Codes of Conduct[247](index=247&type=chunk) [Item 9B. Other Information](index=35&type=section&id=Item%209B.%20Other%20Information) This item reports that there is no other information required to be disclosed - There is no other information to report under this item[248](index=248&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=35&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to LightPath Technologies, Inc PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=36&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the Proxy Statement - Information for this item is incorporated by reference to the Proxy Statement for the fiscal year 2024 Annual Stockholders' Meeting[250](index=250&type=chunk) [Item 11. Executive Compensation](index=36&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's Proxy Statement - Information for this item is incorporated by reference to the Proxy Statement for the fiscal year 2024 Annual Stockholders' Meeting[251](index=251&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management](index=36&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management) Security ownership information is incorporated by reference from the Proxy Statement, with 2.23 million securities outstanding under equity plans - Information for this item is incorporated by reference to the Proxy Statement for the fiscal year 2024 Annual Stockholders' Meeting[252](index=252&type=chunk) Securities Authorized for Issuance Under Equity Compensation Plans (FY2023) | Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights | Weighted Average Exercise and Grant Price of Outstanding Options, Warrants and Rights ($) | Number of Securities Remaining Available for Future Issuance | | :------------------------------------------------ | :-------------------------------------------------------------------------- | :---------------------------------------------------------------------------------------- | :----------------------------------------------------------- | | Equity compensation plans approved by security holders | 2,232,417 | 1.66 | 1,633,538 | | Equity compensation plans not approved by security holders | — | — | — | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=36&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the Proxy Statement - Information for this item is incorporated by reference to the Proxy Statement for the fiscal year 2024 Annual Stockholders' Meeting[254](index=254&type=chunk) [Item 14. Principal Accountant Fees and Services](index=36&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's Proxy Statement - Information for this item is incorporated by reference to the Proxy Statement for the fiscal year 2024 Annual Stockholders' Meeting[255](index=255&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=36&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules filed as part of the Annual Report on Form 10-K - This section details the exhibits filed as part of the Annual Report on Form 10-K, including corporate governance documents, loan agreements, and equity compensation plans[257](index=257&type=chunk)[265](index=265&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk) [Item 16. Form 10-K Summary](index=40&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K Summary is provided - No Form 10-K Summary is provided[270](index=270&type=chunk) [Index to Consolidated Financial Statements](index=40&type=section&id=Index%20to%20Consolidated%20Financial%20Statements) This section provides an index to the consolidated financial statements, including the Report of Independent Registered Public Accounting Firm and detailed Notes - The index lists the Report of Independent Registered Public Accounting Firm by MSL, P.A., and the Consolidated Financial Statements, which include Balance Sheets, Statements of Comprehensive Income (Loss), Statements of Changes in Stockholders' Equity, and Statements of Cash Flows, along with their accompanying notes[272](index=272&type=chunk) [Report of Independent Registered Public Accounting Firm – MSL, P.A.](index=41&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm%20%E2%80%93%20MSL,%20P.A.%20(MSL%20PCAOB%20%23569)) MSL, P.A. issued an unqualified opinion on LightPath's consolidated financial statements, identifying inventory allowance as a critical audit matter - MSL, P.A. provided an unqualified opinion, stating that LightPath's consolidated financial statements for June 30, 2023, and 2022, are presented fairly, in all material respects, in conformity with GAAP[274](index=274&type=chunk) - The critical audit matter identified was the subjective evaluation of management's estimate of the inventory allowance, due to significant assumptions involved in estimating future inventory turnover and sales[279](index=279&type=chunk)[280](index=280&type=chunk) [Consolidated Financial Statements](index=42&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present LightPath's financial position, including total assets of $53.5 million (2023) and net losses of $4.0 million (2023) Consolidated Balance Sheet Highlights | Metric | June 30, 2023 ($) | June 30, 2022 ($) | | :---------------------- | :---------------- | :---------------- | | Total Assets | 53,536,184 | 50,713,921 | | Total Liabilities | 17,583,659 | 20,982,683 | | Total Stockholders' Equity | 35,952,525 | 29,731,238 | | Cash and cash equivalents | 4,687,004 | 5,507,891 | | Restricted cash | 2,457,486 | — | | Inventories, net | 7,410,734 | 6,985,427 | | Loans payable, current portion | 1,023,814 | 998,692 | Consolidated Statements of Comprehensive Income (Loss) Highlights | Metric | Year Ended June 30, 2023 ($) | Year Ended June 30, 2022 ($) | | :---------------------- | :--------------------------- | :--------------------------- | | Revenue, net | 32,933,949 | 35,559,160 | | Gross margin | 11,074,823 | 11,814,636 | | Operating loss | (3,554,541) | (2,627,234) | | Net loss | (4,046,871) | (3,542,181) | | Loss per common share (basic) | (0.13) | (0.13) | Consolidated Statements of Cash Flows Highlights | Metric | Year Ended June 30, 2023 ($) | Year Ended June 30, 2022 ($) | | :-------------------------------------- | :--------------------------- | :--------------------------- | | Net cash (used in) provided by operating activities | (2,809,523) | 1,464,128 | | Net cash used in investing activities | (2,867,985) | (1,626,614) | | Net cash provided by (used in) financing activities | 7,455,876 | (636,174) | | Change in cash, cash equivalents and restricted cash | 1,636,599 | (1,266,803) | | Cash, cash equivalents and restricted cash, end of period | 7,144,490 | 5,507,891 | [Notes to Consolidated Financial Statements](index=45&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed information on LightPath's accounting policies, financial statement components, and a subsequent event regarding the Visimid acquisition - LightPath's accounting policies include estimates for accounts receivable allowance, inventory obsolescence, stock-based compensation, and income taxes; revenue is recognized upon transfer of control of products or services[298](index=298&type=chunk)[301](index=301&type=chunk)[303](index=303&type=chunk)[311](index=311&type=chunk)[318](index=318&type=chunk)[330](index=330&type=chunk) Inventories, net (FY2023 vs. FY2022) | Component | June 30, 2023 ($) | June 30, 2022 ($) | | :---------------- | :---------------- | :---------------- | | Raw materials | 2,999,879 | 3,019,156 | | Work in process | 2,909,439 | 2,243,907 | | Finished goods | 2,626,106 | 3,052,001 | | Allowance for obsolescence | (1,124,690) | (1,329,637) | | **Total Inventories, net** | **7,410,734** | **6,985,427** | Goodwill and Intangible Assets, net (FY2023 vs. FY2022) | Asset Type | June 30, 2023 ($) | June 30, 2022 ($) | | :------------------ | :---------------- | :---------------- | | Goodwill | 5,854,905 | 5,854,905 | | Total Intangible Assets, net | 3,332,715 | 4,457,798 | - LightPath's Chinese subsidiary, LPOIZ, benefits from an incentive program with a **15%** tax rate and repatriated **$1.9 million** and **$2.8 million** from LPOIZ in FY2023 and FY2022, respectively, incurring Chinese withholding taxes[347](index=347&type=chunk)[349](index=349&type=chunk) Deferred Tax Assets and Liabilities (June 30, 2023 vs. 2022) | Item | June 30, 2023 ($) | June 30, 2022 ($) | | :------------------------ | :---------------- | :---------------- | | Gross deferred tax assets | 12,348,000 | 15,914,250 | | Valuation allowance | (11,057,000) | (14,388,277) | | Total deferred tax assets | 1,291,000 | 1,525,973 | | Total deferred tax liabilities | (1,616,000) | (1,923,988) | | **Net deferred tax assets (liabilities)** | **(325,000)** | **(398,015)** | - Total stock-based compensation expense was **$1.31 million** in FY2023, up from **$825,250** in FY2022, included in selling, general and administrative expenses[373](index=373&type=chunk) - LightPath has operating leases for facilities in Orlando, Zhenjiang, and Riga, and finance leases for equipment; the Orlando lease was extended to March 31, 2034, and the Zhenjiang lease expires December 31, 2024[377](index=377&type=chunk)[379](index=379&type=chunk)[380](index=380&type=chunk) Future Maturities of Loans Payable (as of June 30, 2023) | Fiscal Year Ending | BankUnited Term Loan ($) | Equipment Loans ($) | Total ($) | | :----------------- | :----------------------- | :------------------ | :-------- | | June 30, 2024 | 901,078 | 122,736 | 1,023,814 | | June 30, 2025 | 1,273,533 | 139,966 | 1,413,499 | | June 30, 2026 | - | 79,761 | 79,761 | | June 30, 2027 | - | 37,571 | 37,571 | | After June 30, 2027 | - | 19,756 | 19,756 | | **Total Payments** | **2,174,611** | **399,790** | **2,574,401** | - In July 2023, LightPath acquired Visimid Technologies for **$1 million** in cash, **$1.55 million** in restricted stock, and **$150,000** in assumed bank debt, aligning with its growth strategy to enhance engineered solutions capabilities[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk)

LightPath Technologies, Inc. (NASDAQ:LPTH) Q3 2023 Earnings Conference Call May 11, 2023 5:00 PM ET Company Participants Albert Miranda - CFO Sam Rubin - President and CEO Conference Call Participants Brian Kinstlinger - Alliance Global Partners Gene Inger - ingerletter.com Operator Good afternoon, everyone. And welcome to the LightPath Technologies Fiscal Third Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ____________ Commission file number 000-27548 LIGHTPATH TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) (State or other jur ...

LightPath Technologies, Inc. (NASDAQ:LPTH) Q2 2023 Earnings Conference Call February 9, 2023 5:00 PM ET Company Participants Sam Rubin - President and Chief Executive Officer Albert Miranda - Chief Financial Officer Conference Call Participants Scott Buck - H.C. Wainwright Aaron Martin - AIGH Investment Partners Gene Inger - ingerletter.com Operator Good afternoon, and welcome to the LightPath Technologies Fiscal 2023 Second Quarter Financial Results Conference Call. [Operator Instructions] Please note this ...